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I'm in the process of placing my order. I was going to pay cash but decided to finance with BMWFS for the Mission to Drive rebate.

Is there a penalty for paying it off early? I've heard conflicting reports, one CA I spoke with said I could keep the $1,000 even if I paid it off he first month. The other CA said I needed to make 3 payments or BMWFS would claw it back.

As far as I understand car loan prepayment penalty depends on the state. Ex. in CA if I'm not mistaken there could be no penalties.
Start researching from this intro. It'll give you terms needed for further research.

I also heard that BMWFS won't charge any penalties if you make a minimum of 6 monthly payments. This needs to be confirmed!

But the best way of course is to look into the contract. It'll say explicitly if there are any penalties.

As far as I understand car loan prepayment penalty depends on the state. Ex. in CA if I'm not mistaken there could be no penalties.
Start researching from this intro. It'll give you terms needed for further research.

I also heard that BMWFS won't charge any penalties if you make a minimum of 6 monthly payments. This needs to be confirmed!

But the best way of course is to look into the contract. It'll say explicitly if there are any penalties.

Thanks for the reply. I know that Iowa where I live explicitly condemns prepayment penalties, so I know I won't get hurt, but I don't want my CA to end up having to eat the $1,000... not a great way to start a long term relationship you know?

Thanks for the reply. I know that Iowa where I live explicitly condemns prepayment penalties, so I know I won't get hurt, but I don't want my CA to end up having to eat the $1,000... not a great way to start a long term relationship you know?

Jay

Well, in this case your CA should be the first person who tells you to ignore prepayment penalty wording and not worry about it. If he's a good CA